Bitcoin, XRP, and Stellar declined as geopolitical tensions between the United States and Iran pressured the crypto market. At press time, Bitcoin traded near $61,642, down about 1.60% over 24 hours, after falling from earlier highs near $63,800. XRP traded near $1.11, reflecting a 24-hour decline of about 3%, while Stellar's XLM fell 4.63% to about $0.1898. The broader crypto market capitalization declined 1.50% to roughly $2.13 trillion. The selloff followed renewed threats from President Donald Trump, who said Iran would "pay the price" after taking too long to negotiate a deal, with reports indicating Trump was considering ordering the U.S. military to target Iranian power plants and bridges. Traders reduced risk exposure amid rising military tensions and inflation concerns, with May CPI rising to 4.2%, the highest level since April 2023.
U.S. Military Strikes Iranian Defense Systems Near Strait of Hormuz
Trump said Iran's military had been "completely defeated" and accused Tehran of delaying negotiations. His remarks marked a sharper tone from earlier comments suggesting the United States and Iran were close to a possible agreement. The latest escalation followed U.S. strikes on Iranian sites after an American Army helicopter was reportedly downed in the Gulf. U.S. Central Command said Iranian defense systems, ground control stations, and radar sites near the Strait of Hormuz were targeted.
Iran's Islamic Revolutionary Guard Corps said it responded with strikes on 21 U.S.-linked targets in the region, including sites in Bahrain and Jordan. Kuwait also said its military intercepted an attack. Iranian Foreign Minister Abbas Araghchi said Iran would not leave any attack or threat unanswered. Iranian officials also accused the United States of damaging the diplomatic process through shifting demands and ceasefire violations.
The Strait of Hormuz remains a key concern for global markets because of its role in energy shipments. The U.S. Energy Department's forecasting arm warned that oil prices could stay elevated through at least July, with Brent crude expected to average about $105 per barrel in June and July.
Bitcoin Falls to $61,642 as May CPI Rises to 4.2%
Bitcoin's decline to about $61,642 placed the asset close to the lower end of its recent trading range. The price briefly fell near $60,700 after Trump's latest comments before recovering part of the move. The largest cryptocurrency has remained under pressure after losing more than 8% over the past seven days.
The total crypto market capitalization fell 1.50% to about $2.13 trillion, showing weakness beyond Bitcoin. Traders also monitored U.S. inflation data after May CPI rose to 4.2%, the highest level since April 2023. Core CPI increased to 2.9%, its highest level since September 2025. Higher inflation readings may increase expectations for tighter Federal Reserve policy, as inflation moved further above the Fed's 2% target.
FAQ
What caused Bitcoin to fall to $61,642?
Bitcoin fell to about $61,642 due to geopolitical tensions between the United States and Iran, combined with U.S. inflation concerns. President Donald Trump threatened Iran would "pay the price" and reports indicated he was considering ordering military strikes on Iranian infrastructure. The broader crypto market capitalization declined 1.50% to roughly $2.13 trillion as traders reduced risk exposure.
How high did U.S. inflation rise in May?
May CPI rose to 4.2%, the highest level since April 2023. Core CPI increased to 2.9%, its highest level since September 2025. Higher inflation readings moved further above the Fed's 2% target, increasing expectations for tighter Federal Reserve policy and adding pressure to risk assets including cryptocurrencies.
